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In Monmouth County, Surprise Over an Investigation

KEYPORT, N.J., Feb. 22 - Like many people of this quiet Monmouth County town, Richard Yarczower knew Mayor John J. Merla and former Councilman Robert J. Hyer as neighbors and public servants, concerned about the middle-class waterfront enclave and its 7,500 residents.

So, Mr. Yarczower said, he was shocked and surprised when he heard the news that the mayor and Mr. Hyer were among 11 county officials who were arrested Tuesday morning and charged with extortion or money laundering.

Standing outside his embroidery shop on West Front Street, Mr. Yarczower, 63, looked shocked as he spoke cautiously about the local politicians.

"In nine years I've never known them to be bad guys," Mr. Yarczower said. "They were friendly, seemed to care about the city's business and residents, but I guess that was only half of the picture. It's really shocking they would do something so terrible, it's sad."

Neither Mr. Merla nor Mr. Hyer have had a chance in court to refute the allegations against them. But the United States attorney's office and the F.B.I. have accused them and eight others, including the mayors of Hazlet and West Long Branch, of extorting cash bribes and free services from a contractor who was working for the F.B.I.

In the 11th case, a Monmouth County official was charged with helping the contractor to launder money.

According to United States Attorney Christopher J. Christie, Mr. Merla, 43, took $9,000 in cash from a contractor, who was an undercover operative, during a meeting at a Keyport restaurant on Sept. 11, 2003, to cover the cost of a political fund-raising picnic.

Mr. Merla then authorized the town to hire the contractor's company for two public works projects, including a bulkhead removal and tree chipping. Mr. Merla later took an additional $2,500 in connection with other projects, Mr. Christie said.

Mr. Hyer, 63, who was described on tape by Mr. Merla as the "point guy" to the contractor, met with the men several times, authorities said, and was influential in steering several public works jobs to the contractor in return for $5,000, according to the criminal complaint.

The authorities said that during one meeting, Mr. Hyer was recorded telling the agent: "We'll do whatever you want. I know the game."

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Inside of Rudy's Shoe Repair, a shop that, like this town, is quaint and showing its age, the town's old-timers gather to sit on rocking chairs, stare out onto the business district and talk about town business. On Tuesday, the talk was all about the arrests.

"Some of us have known about these problems for years," said one man who asked not to be identified. "Some other folks are genuinely surprised, and most others are just acting surprised and hope they are not next on the list."

Keyport's town hall was closed on Tuesday.

By the afternoon, many of the residents of the town, which is sandwiched between the Raritan Bay and busy Route 36, were just beginning to hear news of the arrests. Some were reluctant to comment because of Mr. Merla's influence.

Some recalled a case in the early 1990's when Mr. Merla was arrested on bribery charges involving sewer contracts. Despite audiotape evidence, Mr. Merla was found not guilty on those charges.

One resident, who asked to be identified only as Jack L., said, "The people of this town had a chance to vote him out of office, but they didn't."

Elsewhere in Monmouth County, reaction to the 11 arrests and charges was similar.

"All we know is that he is in jail," Patricia Johnson, director of personnel for Hazlet, said, referring to Mayor Paul A. Coughlin. "I wish we knew more, I wish this didn't happen."

In Middletown, Mayor Tom Hall said most of the county Republicans, including some of those arrested, gathered Monday night for a holiday dinner where, he said, there were no signs of the impending arrests.

"When you consider the facts the U.S. attorney has laid out, it's pretty sickening," Mr. Hall said. "This reflects poorly not only on those who were charged, but for all of the municipalities involved and for the truly hard-working people in public service. Today is just another sad day in New Jersey politics."